Corporate: OptiComm is the latest acquisition target of growing telco Uniti
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Uniti is offering $532m for OptiComm, of which $407m will be in cash and the remainder in the form of Uniti shares.
Half of the acquisition will be funded by a $270m capital raise and a further $150m from a new debt facility. This morning OptiComm’s board gave the deal their blessing.
Uniti first listed in February last year at 20c per share and currently sits at $1.54. It is the most successful IPO of 2019.
Uniti chairman Graeme Barclay said the purchase of OptiComm would deliver “the next phase of growth” for shareholders.
Uniti’s focus is the business-to-business market segment, while OptiComm targets planned lifestyle communities such as retirement villages. It has a contracted pipeline in excess of 150,000 lots and over 70,500 active premises.
Uniti expects the buy will see it propelled into the ASX200 index.
“The Uniti board is confident that we are well placed to significantly grow the fibre footprint and maximise the efficiencies of the combined businesses to drive long-term, sustainable shareholder value,” Barclay said.
OptiComm chairman Allan Brackin said the offer was highly compelling and fully recognised the company’s value.
Shares only rose 4 per cent today, but are up 160 per cent since its IPO last August.
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